Abrasilver Resource Corp. · TSX:ABRA
Abrasilver Resource — Investor Presentation (July 2021)
37 slides from Abrasilver Resource's investor presentation, July 2021
Slide 1: Emerging As a Top-Tier Silver/Gold Exploration Company
RESOURCE CORP TSX-V: ABRA OTCPK: ABBRF i Emerging As a Top-Tier Silver/Gold Exploration Company July 2021
Slide 2: Disclaimers
Disclaimers This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regul
Slide 3: AbraSilver – A Premier Silver & Gold Exploration Company
AbraSilver – A Premier Silver & Gold Exploration Company Diablillos – Rapidly Growing a High-Grade, Large-Scale Project Large 80km2 property (100% AbraSilver) in mining-friendly Salta, Argentina Large & growing resource: +140 million silver-equivalent (AgEq) ounces or 1.7 million gold-equivalent oun
Slide 4: A Top Performer With A Strong Balance Sheet
A Top Performer With A Strong Balance Sheet AbraSilver is Fully-Funded to Advance Diablillos to a Construction Decision CAPITALIZATION MAJOR SHAREHOLDERS Shares issued 450M Eric Sprott 15% Warrants (average exercise price $0.23) 142M SSR Mining 9% Options (average exercise price $0.11) 21M Managemen
Slide 5: Management & Directors
Management & Directors Strong Team with Extensive Technical and M&A Expertise Management John Miniotis, Chief Executive Officer – Based In Toronto, Canada • 17+ years of experience in the mining industry (Lundin Mining, AuRico Metals, Barrick, BMO) focused primarily on mergers & acquisitions, equity
Slide 6: Assets in Attractive Mining Jurisdictions
Assets in Attractive Mining Jurisdictions Salta province ranked #1st overall for investment attractiveness in Latin America and Caribbean Basin in 2020* AbraSilver’s portfolio of assets are located in 3 of the top 10 most attractive jurisdictions in Latin America* Diablillos project in Salta, Argent
Slide 7: Silver in Context with Previous Bull Markets
Silver in Context with Previous Bull Markets We are currently in the early innings of the next multi-year silver bull market…. Source: Katusa Research 7 7
Slide 8: Diablillos = Highest Grade Oxide Project in Americas With Further Upside Potential
Diablillos = Highest Grade Oxide Project in Americas With Further Upside Potential Diablillos average oxide grades of 2.1 g/t AuEq is ~2.5x higher than comparable oxide projects in the Americas….and expected to increase further! 2.50 Comparable Oxide Projects in Americas (g/t AuEq) 2.08 2.00 1.89 M&
Slide 9: World-Class Drill Results With 3 of the Top 12 Intercepts Globally
World-Class Drill Results With 3 of the Top 12 Intercepts Globally Source: Cormark Securities, S&P Global 9 9
Slide 10: Diablillos Project
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Slide 11: Diablillos: Summary
Diablillos: Summary Large Resource With Significant Exploration Upside 2018 PEA: Open pit +6 ktpd plant producing 9.8 Moz AgEq per year PEA after-tax IRR of 30.2% and NPV7.5% of US$212M (at US$20/oz Ag & $1,300/oz Au) Multiple high-grade intercepts to date, confirms upside potential to significantly
Slide 12: Excellent Torque to Rising Silver & Gold Prices
Excellent Torque to Rising Silver & Gold Prices Based on current commodity prices, the Diablillos project has an NPV 5% of CAD$729 M or ~$1.66/sh. ABRA is currently trading at <0.30x NPV. This is based on the existing resource, and does not include any value for the Phase I drill results High margin
Slide 13: Diablillos – Large Ag-Au Resource
Diablillos – Large Ag-Au Resource Main Oculto deposit is a high-sulphidation epithermal Ag-Au deposit Open Pit Mineral Resource contains 140Moz Silver Equivalent or 1.7Moz Gold Equivalent Majority of resource is in Indicated category due to 88,000 metres of drilling BHP-Billiton, Pacific Rim, Barric
Slide 14: Consistently Intersecting High-Grade Drill Results With Further Results Pending
Consistently Intersecting High-Grade Drill Results With Further Results Pending See Drill Results From Phase I Drill Program Announced To Date: Silver Gold From Interval Silver Gold Copper Equiv Equiv Drill Hole (m) To (m) Type (m) g/t g/t % g/t g/t DDH-19-002 137.5 155 Oxides 17.5 603.9 0.1 - 611.4
Slide 15: Oculto – Multiple Successful Targets Tested in Phase I Exploration Program
Oculto – Multiple Successful Targets Tested in Phase 1 Exploration Program (15,000 m) Phase I drill program has a high-grade hit rate of over 88%, with 42 out of 48 holes so far intersecting high-grade mineralization over significant widths High-grade intercepts in all three target zones, with drill
Slide 16: High-Grade Tesoro Zone Continues to Expand
High-Grade Tesoro Zone Continues to Expand Strike extent of ~200m, with thickness of ~50m and vertical extent of ~150m N S 16
Slide 17: Phase II Drill Program Underway
Phase II Drill Program Underway Focused on Several Step-Out Targets Beyond Oculto Phase II program now underway, drilling a minimum of 10,000m testing several step-out targets Oculto Northeast extension: Whittle Pit could be expanded to incorporate additional high-grade resources Laderas Zone: 500m
Slide 18: Diablillos – Excellent Access to Infrastructure
Diablillos – Excellent Access to Infrastructure Located in an established mining camp that includes multiple lithium and borate mining operations (e.g., FMC, Orocobre) Accessible by good all-weather gravel roads A natural gas pipeline built to supply mining projects like Diablillos is located 34 km
Slide 19: Several Key Milestones Ahead
Several Key Milestones Ahead Q2 2021 Q3 2021 Q3 2021 Q2 – Q4 2021 Q4 2021 Completed Phase I Diablillos Updated Complete Diablillos Phase II drill program - Diablillos to advance drill program Resource Statement Updated PEA Study underway (minimum towards a Feasibility (15,000m) 10,000m) Study Result
Slide 20: Other Projects
20 La Coipita, San Juan, Arcas Project, Argentina Antofagasta, Chile OTHER PROJECTS Aguas Perdidas, Chubut, Argentina 20
Slide 21: Arcas Property in Chile – Partnered with Rio Tinto
Arcas Property in Chile – Partnered with Rio Tinto Rio Tinto has the right to earn up to a 75% interest in the project by funding US$25M as follows: 1. If Rio Tinto incurs US$4M within 3yrs & makes aggregate cash payments of US$300k during first two years, it can acquire a 51% interest 2. If Rio Tin
Slide 22: La Coipita Project (San Juan, Argentina)
La Coipita Project (San Juan, Argentina) Located within one of the world’s most endowed Cu-Au belts, the prolific Miocene porphyry epithermal belt (e.g. Pelambres, Los Bronces, El Teniente) 16 km north of McEwan Mining’s Los Azules deposit (M&I Resources of 962Mt @ 0.48% Cu) and 90 km from Antofagas
Slide 23: Key Drivers for Investing
Key Drivers for Investing Drilling has confirmed Diablillos is one of the most promising primary silver –gold projects globally Large Indicated resource base (containing +140 Moz Silver Equiv) expected to grow further with ongoing drilling High torque to both silver & gold prices : NPV increases by
Slide 24: Additional Information
= Additional Information
Slide 25: Oculto Geological Model
Oculto Geological Model Epithermal Ag-Au Deposit with Cu-Au Porphyry Intrusive Diablillos property has multiple epithermal and porphyry targets Oculto Zone contains majority of the resources and has over 85,000 m of drilling, but only down to a depth of ~400 m Past drilling focused on the high sulph
Slide 26: Oculto – Significant Exploration Potential
Oculto – Significant Exploration Potential 26 26
Slide 27: Focused on Expanding High Grade Gold Zone at Depth
Focused on Expanding High Grade Gold Zone at Depth… Results from recent drill campaign 27 27
Slide 28: Defining a Shallow Gold Zone
Defining a Shallow Gold Zone… Results from recent drill campaign 28 28
Slide 29: And Extending Gold Zone Towards North-East
…And Extending Gold Zone Towards North-East Results from recent drill campaign 29 29
Slide 30: Tesoro Zone Plan View
Tesoro Zone Plan View PEA pit shell PEA pit outline 30 30
Slide 31: Oculto - High Grade Copper Intercepts
Oculto - High Grade Copper Intercepts Results from recent drill campaign 31 31
Slide 32: Diablillos – Large Scale Potential
Diablillos – Large Scale Potential The Diablillos project has a very large existing Indicated Resource base when compared against other silver projects in Latin America Numerous smaller-scales mines are being operated by intermediate silver producers Source: Corporate Materials; AgEq based on Ag and
Slide 33: Oculto Deposit Geological Model
Oculto Deposit Geological Model Most work at Diablillos has focused on the Oculto deposit, a high sulphidation epithermal silver-gold deposit Mineralization starts near surface and is completely oxidized to over 200m Mineralization is open at depth with excellent potential for extensions of high gra
Slide 34: Oculto Mineralization & Structures
Oculto Mineralization & Structures Recent surface mapping and drill data interpretation indicates that high grade mineralization is strongly correlated with steeply dipping, tabular, hydrothermal breccia bodies oriented along NE-trending faults 34 34
Slide 35: Diablillos – 2018 PEA Production
Diablillos – 2018 PEA Production Average annual production of 9.8 Moz AgEq (136,000 oz AuEq) Average head grade of 125 g/t Ag and 0.72 g/t Au (177 g/t AgEq or 2.45 g/t AuEq) 18-month period for mill construction and pre-stripping of the Oculto pit Overall stripping ratio of 4.6:1 and 3.2:1 excluding
Slide 36: Diablillos – Open Pit PEA Highlights
Diablillos – Open Pit PEA Highlights Excellent Leverage to Rising Silver Prices PEA completed March 2, 2018, by RPA with input from GR Engineering Services Contractor-operated open pit mine with a 6,000 tpd conventional silver processing facility (mill, agitated leaching, and Merrill-Crowe circuit)
Slide 37: To Find Out More, Contact
To Find Out More, Contact: John Miniotis – President & CEO john@abrasilver.com +1.416.306.8334 www.abrasilver.com
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